Malawi

EITI Status Meaningful progress
Joined EITI in 2015
Latest Data From 2017
Latest Validation 2018
Website EITI Malawi
Last updated 10 June 2020

Overview

The country is a small producer of uranium, gemstones, coal and construction materials, although the government is promoting investment in petroleum and in minerals such as graphite. Some have expressed concerns about the sector’s environmental impact, distribution of benefits and license awards, particularly related to the oil exploration around Lake Malawi. Malawi is implementing the EITI to build trust amongst stakeholders in the mining, oil and gas sectors.

Malawi's third EITI was published in 2019, covering the oil, gas, mining and forestry sectors.

Extractive industries contribution

  • 0.6 %
    to exports
  • 0.9 %
    to GDP
  • 1.1 %
    to government revenue
  • 0.2 %
    to employment

Beneficial ownership disclosure

Objectives of beneficial ownership transparency in Malawi

  • Increasing the contribution of the mining sector to Gross Domestic Product (GDP) from less than 1% to 20% by 2025;
  • Promoting good governance and accountability in the extractive sector;
  • Deterring corruption in the allocation of extractive rights;
  • Preventing abuse of Malawi’s taxation system;
  • Support of efforts to address money laundering and other financial crimes in the economy;
  • Promoting Malawian citizens’ participation in the monitoring of extractive activities, including local content provisions and;
  • Promoting citizens getting the full economic benefit of the nation’s natural resources, especially in communities where extraction is taking place.

Progress on implementing beneficial ownership disclosure 

According to Malawi’s latest EITI report, the Companies Act (1984) is set to be reformed to provide for beneficial ownership disclsoure. The report provides some disclosure of legal and beneficial ownership for companies although this does not cover all extractive companies.

Malawi EITI plans to fully implement its beneficial ownership roadmap through organising meetings with key stakeholders to drive for legislation on beneicial ownership disclosure and building the capacities of relevant institutions to champion and facilitate implementation of  beneficial ownership disclosure. Read Malawi's beneficial ownership roadmap below for more information.

Government will ensure that in the future, mining contracts are properly negotiated to maximise benefits for the country. In this regard, Government will establish an independent contract negotiating unit in extractive resources.
HE Peter Mutharika, President of the Republic

Production

Malawi is a small producer of uranium, rock aggregate, bituminous coal, gemstones, limestone and a range of construction materials. The country is also promoting oil and gas exploration, particularly around the Lake Malawi region. In the latest 2016/17 Malawi-EITI Report, rock aggregates accounted for more than half (56%) of extractive sector revenue, followed by coal (19%). 

Mineral Production (Tonnes)

Initializing chart.

Natural resources 

Malawi has deposits of uranium, coal, limestone, bauxite and rare earths.

CommodityReservesUnitSignificance
Uranium11,337metric tonsU3O8 content, from total reserves of 10.46 million tons of ore.
Coal, bituminious21.4million metric tons
GemstonesN/Akgs
Limestone25million metric tons
Bauxite28.8million metric tonsWith average grade of 43.9% AL2O3
Beach dune sand700million metric tonsWith an average grade of 5.6% total heavy mineral sands (ilmenite, zircon, rutile, monazite and garnet)
Rare earths2.5million metric tonsWith 4.2% rare earths content and substantial inferred resources.

Revenue collection

According to the MEITI 2016/17 report, total revenue for the extractive sector was MWK 11,457 million (equivalent to USD 15.5 million) of which 47% came from forestry, and 28% from solid minerals, and 9% from oil and gas. These revenues were mainly collected through royalty tax, resource rent tax and corporate income tax and log sales.

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Reconciled revenues by company (Top 5 companies)

Revenue allocation

Revenues from extractive industries are centralised at the national level.

Social and economic contribution

According to Malawi's EITI Report, the mining sector contributed 0.9% to Malawi’s GDP in 2016/2017. Developing the mining sector is a national priority. In total, the small extractive sector contributed 1.7% to government revenue, 0.6% to export and about 0.2% of employment. In 2017, the mining sector employed  16,029 people, an increase from about 13,140 in 2015. 

Innovations

The EITI encourages multi-stakeholder groups to explore innovative approaches to make the EITI more relevant and useful.

  • Malawi's latest EITI Report provides information about the legal/fiscal framework, revenues and contribution of the forestry sector to the economy. 
  • EITI Malawi also covers transport revenue disclosures for the extractive sector.

Implementation

The EITI Board suspended Malawi on 16 October 2019 for failing to publish its 2016/17 EITI Report by 30 June 2019 (Decision 2019-60/BC-279). The suspension was lifted after Malawi published its report in November 2019 (Decision 2019-72/BC-282)

Malawi EITI aims to be a key part of Malawi’s reforms to increase transparency and accountability in the natural resource sector. The 2020 work plan includes strategic goals like building trust between stakeholders and strengthening partnerships. 

Governance

The government announced its intention to implement the EITI in a Presidential address to the 45th session of Parliament on 17 June 2014, although this commitment was already included in the government’s March 2013 Mines and Minerals Policy. Malawi had undertaken previous preparatory work, as outlined in the (then) Ministry of Finance and Development Cooperation’s October 2011 overview of work done in Malawi’s EITI debate. The ToR of the multi-stakeholder group gives four seats each to the three stakeholder groups (with alternates). Members are appointed for three years renewable.

Timeline

 

Validation

Malawi’s Validation against the 2016 Standard commenced on 1 September 2018 and the country was found to have made meaningful progress in implementing the Standard (Decision 2019-18/BM-42). The country's second Validation is scheduled to commence on 27 August 2020.

Malawi's progress by requirement

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